At the end of 2009, 10% of mortgages had at least 1-payment past due and another 5% of mortgages were in the foreclosure process. At the end of the 3rd quarter of 2011 8% of mortgages had at least 1-payment past due and another 4% of mortgages were in the foreclosure process. Currently, there are fewer homes being foreclosed on. Many families are concerned about inflation in the US. It has caused prices to rise throughout the country by about 64% over the last 20 years. That’s an annual increase of 2.5%. An example that looks grim is that a person who retired December of 1990 on a fixed income with no cost of living adjustments would have 61% of their purchasing power as of December of 2010. That surprising example keeps consumers teetering between purchasing homes and staying in their current homes. The good news for Houston is that our current housing inventory has reduced, interest rates are low, and we have the most stable housing market in the country. Consumers buying homes in Houston, Texas have a lot more buying power than home buyers in other areas of the country.
This Guest Post was written by Emma Summers and discusses the Houston Housing Market.
With a look at some of the top housing areas in a less than stellar overall market, Houston has continually ranked among the top of the list. Multiple Texas cities have been listed among the best markets, including Dallas and Austin as well. With a better outlook on jobs and an excellent eye towards new features and technology, expect the Houston housing market to continue to rank among the top of these lists.
Just recently, Forbes mapped out the top 10 housing markets in the nation with three different cities making the cut. While Dallas and Austin both made the top 10 list, they were each ranked considerably lower than Houston at spots 10 and nine. Houston came in at number three on the list, ranking behind only the Pittsburgh and Louisville markets. Some of the primary reasons for the high ranking were Forbes’ analysis of foreclosure amounts, to which Houston netted only 1.3 percentages. On the magazine’s housing opportunity index, the city notched a ranking of 73.2, which was considerably close to the top markets.
Statistics of home buys in the area have also contributed to the high rankings for the Houston area. According to the Houston Association of Realtors, sales are up in most of the brackets in comparison to last year. The figures showed a 19 percent increase in homes that ranged from $150,000 to $250,000. Also telling is the fact that sales for homes over the price of $500,000 were up by nearly 26 percent this July. In a market where some areas are experiencing overall drops of nearly 40 percent, Houston has maintained only a slight drop in overall sales. As a whole, home sales for the entire U.S. are down by 14 percent from 2010. Some experts believe that the area is seeing an increase, hopefully back towards where the market had been in 2009.
Area developers have also continued to boost their numbers in comparison to other cities because of s strong dedication to energy efficiency. Most builders have kept the new Houston area apartments, condominiums and houses along the Energy Star qualifications. Some area developers are exploring new irrigation techniques along with eco friendly building techniques.
Because the Houston area has stayed afloat with better than average employment numbers mixing with great new building features, expect it to continue to rise back to where numbers once were. Regardless of what the national market continues to do in the near future, Houston will likely remain among the top of the lists when it comes to analysis of overall housing markets.
This article was in the August 2011 Issue of the Houston Builder Magazine. It gives some great information about the industry.
Dr. Ray Perryman, president of the economic and financial
analysis firm with Perryman Group, spoke to the approximately 560 guests at the
annual GHBA Mid Year Forecast Luncheon.
The following are key points made concerning the economy both nationally
and locally.
“In the third quarter of 2009, the Gross Domestic Product
(GDP) grew by approximately 1.6 percent.”
While that number represents a small jump, it was significant in terms
of the context of the downturn. Dr.
Perryman explained of that 1.6 percent, 1.5 percent was car sales.” This phenomenon was due to the government
rebate program ‘Cash for Clunkers.’
In the fourth quarter of 2009, the GDP grew by a high rate
of about 5 percent. In the first quarter
of 2010, it grew by about 3.7 percent.
“That’s when we said the GDP growth was slowing down a bit,” Perryman
reported. “And then the next quarter
(second quarter of 2010) was about 1.7 percent.”
Midway through 2010, Dr. Perryman explained that the media
was dramatizing the doom-and-gloom of the economy. There were many reports circulating noting it
was slowing dramatically and speculating a double-dip recession.
“It was only about 2 percent the next quarter (third quarter
of 2010),” said Dr. Perryman. “It rose
slightly the fourth quarter, just over 3 percent.” In the first quarter of 2011, it dropped to
1.8 percent.
“I think close to 3 percent is something that Houston can
probably sustain, “ said Dr. Perryman.
He concluded it wasn’t a trendsetter, “but demonstrated slow, healthy
growth.”
“If you give Houston 6 to 9 months, we are going to have a
very strong couple of quarters and that will help us get back on track.” The slow recovery can be attributed in part
to corporate America’s uncertainty, which has historically withheld about $600
to $700 billion in cash on any given day.
Dr. Perryman said today, corporate America is sitting on about $2.4
trillion in cash, which is about four times the normal amount.
Dr. Perryman concluded with the factors contributing to the
success of Texas. They include our
robust mineral sector and a strong conservative banking industry.
“Another factor was that our housing industry was not dramatically
overbuilt. We gained in round numbers
about 400,000 people a year. On average
there are approximately 1,200 people a day moving to Texas,” Dr. Perryman
noted.
“If you add 400,000 people a day to an economy, you’re going
to need 150,000 to 160,000 housing units,” he said. “At the peak of construction during this
mortgage crisis, Houston goes through approximately 215,000 houses.”
Comparatively, he explained that in 1983, when the state was
smaller and needed approximately 130,000 units, “We didn’t build 215,000, we
built 290,000. This resulted in a huge
inventory that could not be absorbed.”
Dr. Perryman commended in this last recession, the builders
stopped building very quickly once the downturn was imminent. The immediate response to the economy enabled
a much quicker absorption rate.
Perryman concluded by saying, “Nationally, the bottom line
is we are probably about 6 to 9 months waiting on any little spurt in
growth. But overall, here in Texas,
we’ve done a bit better.”
By David S. Jones, Senior Editor, Real Estate Center
Release No. 17-0511
COLLEGE STATION, Tex. (Real Estate Center) — Texas’ economy is not only outperforming
the United States, but the state’s nonfarm employment is growing twice as fast.
Texas gained
254,000 jobs during the 12 months ending April 30, an annual growth rate of 2.5
percent, according to the latest Monthly Review of the Texas Economy produced by the Real Estate Center at Texas A&M University.
During that same period, U.S. nonfarm employment rose 1.1 percent.
The state’s private sector employment growth also was higher than the nation as a whole, 3
percent compared with 1.7 percent.
Texas’ seasonally adjusted unemployment dipped to 8 percent in April, from 8.2 percent
from the same time last year. Meanwhile, national unemployment fell from 9.8
percent to 9 percent.
“All Texas industries except the information industry had more jobs in April 2011 than a
year earlier,” said Center Research Economist Dr. Ali Anari, coauthor of the
monthly report.
Mining and logging ranked first in job creation during the period with 31,800 additions,
an annual growth rate of 15.9 percent. Jobs got a boost as the average number
of active rotary rigs increased from 668.7 to 848.1, according to Hughes Tool
Co.
The 24,500 new construction jobs (a 4.3 percent increase) ranked that industry second.
Gains came in building construction (200 jobs), heavy and civil engineering
construction (10,700) and specialty trade contractors (13,600).
Texas’ professional and business services sector added 54,200 jobs, an annual growth
rate of 4.3 percent. This included 46,900 jobs in administrative and support
services and 7,300 in professional, scientific and technical services.
The state’s education and health services industry added 49,600 jobs, an annual growth rate
of 3.6 percent. Health services accounted for 50,100 while education lost 500.
The state’s leisure and hospitality industry gained 30,400 jobs, an annual growth rate of 3
percent.
For the April-to-April reporting period, the trade sector added 41,100 jobs, up 2.5
percent. Jobs in this industry included 15,900 in wholesale and 25,200 in
retail. Trade is the state’s largest industry after government.
Other services (repair and maintenance; personal and laundry services; and religious,
civic and professional organizations) gained 9.100 jobs, a 2.5 percent annual
growth rate. Transportation, warehousing and utilities gained 9,200 jobs, a 2.2
percent growth rate.
All Texas metropolitan areas except Abilene had more jobs in April 2011 than they did in
April 2010. Petroplex Odessa ranked first in job creation (up 4.5 percent)
followed by petroplex Midland (up 4 percent) then Dallas-Plano-Irving (up 3.1
percent), Beaumont-Port Arthur (up 3.1 percent) and Amarillo (up 3 percent).
The statewide average was 2.5 percent.
Texas Industries Employment Growth Rate, April 2010 to
April 2011
1. Mining and logging: + 31,800 jobs (15.9 percent).
2. Construction: +24,500 jobs (4.3 percent).
3. Professional and business services: +54,200 jobs (4.3 percent).
4. Education and health services: +49,600 jobs (3.6 percent).
5. Leisure and hospitality: +30,400 jobs (3.0 percent).
6. Trade: +41,100 jobs (2.5 percent).
7. Other services: +9,100 jobs (2.5 percent).
8. Transportation, warehousing, utilities: +9,200 jobs (2.2 percent).
9. Manufacturing: +11,400 (1.4 percent).
10. Financial activities: +2,000 jobs (0.3 percent).
11. Government: 2,300 jobs (0.1 percent).
12. Information: -11,600 jobs (-5.9 percent).
Sources:
Texas Workforce Commission and Real Estate Center at Texas A&M University
Texas Metropolitan Areas Ranked by Employment Growth
Rate, April 2010 to April 2011 (in Percent)
For
information on the Real Estate Center, contact Senior Editor David S. Jones at
979-845-2039 (voice), 979-845-0460 (fax) or d-jones@tamu.edu. Or contact Associate Editor Bryan
Pope, 979-845-2088 (office) or b-pope@tamu.edu.
COLLEGE STATION (Real Estate Center) – Sales of existing single-family homes in Texas last month dropped 18 percent from a year ago, according to the most recent Multiple Listing Services (MLS) data compiled by the Real Estate Center at Texas A&M University.
Just over 18,000 existing single-family homes were sold last month.
The median home price dipped 1 percent to $145,700, and the state’s overall inventory was at 7.8 months.
April 2011 MLS data for many Texas cities are available on the Center’s website. Here is a sampling (data current as of today):
HOUSTON (Texas Government Insider) – The City of Houston announced this week
the formation of a new local government corporation, Houston First Corp., that
will incorporate the city’s Convention and Entertainment Facilities Department
(CEFD) with its existing government corporation that manages the city-owned
Hilton Americas.
The city’s George R. Brown Convention Center and other entertainment
facilities will now be controlled by the corporation.
Houston Mayor Annise Parker said consolidation of the CEFD into the Houston
Convention Center Hotel Corp. should save the city $10 million in the next
fiscal year.
Houston First Corp. would lease CEFD properties from the city for $8.6
million, payable during the next fiscal year. The corporation would also face
an annual lease payment of $1.4 million, with lease increases tied to the
Consumer Price Index.
The office market fared well in first quarter 2011, especially Class-A
space, which had a positive absorption of 203,564 sf.
Overall negative net absorption was 64,608 sf.
The industrial market is stabilizing, with a negative absorption
of only 34,621 sf.
Shannon Register is live streaming with Kevin Price on 650 AM’s The Price of Business in April. Shannon gives consumers a market update and some insight into home financing. Shannon is a regular contributor on The Price of Business powered by CBS Radio in Houston, Texas.
February Brings Robust Sales Activity to Upper Segments of the Houston Real Estate Market
Sales of homes from $250K and above give pricing another boost
HOUSTON — (March 16, 2010) — The Houston real estate market completed the second month of 2010 showing continued vitality in home prices, thanks to robust sales activity in the upper housing segments.
Overall February sales of single-family homes across the greater Houston area slid 5.8 percent compared to February 2009, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). When broken out by segment, however, sales of single-family homes priced from $250,000 and above recorded double-digit gains. Sales of all property types declined 7.4 percent in February on a year-over-year basis.
The average price of a single-family home appreciated for the fifth straight month, reaching $203,271, up 12.3 percent versus February 2009. At $147,000, the February single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.5 percent from one year earlier. That represents the tenth consecutive monthly increase in median price.
Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 18.7 percent in February compared to one year earlier. The median price of February foreclosure sales rose 7.5 percent to $86,000 on a year-over-year basis.
Sales of all property types in Houston for February totaled 3,843, down 4.6 percent compared to February 2009. Total dollar volume for properties sold during the month was $747 million versus $711 million one year earlier, representing a 5.1 percent increase.
“We are encouraged by steady homebuying activity in the higher-end single-family segment, which has strengthened Houston’s already enviable real estate pricing,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “We expect to see consumer interest extend to the other segments as the spring homebuying season heats up.”
February Monthly Market Comparison
The month of February brought Houston’s overall housing market mixed results when all listing categories are compared to February of 2009. Total property sales declined while total dollar volume and both median and average single-family home sales prices rose on a year-over-year basis.
The number of available properties, or active listings, at the end of February rose 4.3 percent from February 2009 to 46,658. That represents 1,448 more active listings than one month earlier, in January 2010, and may reflect increased activity stemming from the federal homebuyer tax credit that expires on April 30.
February’s month-end pending sales—those listings expected to close within the next 30 days—totaled 3,168, down 1.8 percent from last year. The months inventory of single-family homes for February grew to 6.3 months compared to 5.9 months one year earlier, but remains better than the national months inventory of single-family homes of 7.8 months, reported by the National Association of REALTORS® (NAR).
CATEGORIES FEBRUARY 2009 FEBRUARY 2010 PERCENT CHANGE
Total property sales 4,030 3,843 -4.6%
Total dollar volume $710,696,861 $747,032,015 5.1%
Total active listings 44,747 46,658 4.3%
Total pending sales 3,227 3,168 -1.8%
Single-family home sales 3,450 3,251 -5.8%
Average single-family sales price $180,966 $203,271 12.3%
Median single-family sales price $138,000 $147,000 6.5%
Months inventory* 5.9 6.3 7.5%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.
Single-Family Homes Update
February sales of all single-family homes in Houston totaled 3,251, down 5.8 percent from February 2009. This is the Houston market’s third consecutive monthly decline in sales. However, broken out by segment, sales of single-family homes priced between $250,000 and $500,000 rose 15.8 percent in February while sales of luxury homes—those priced from $500,000 to the millions—climbed 14.9 percent. By contrast, sales of homes in the below-$80,000 segment fell 27.5 percent and those priced between $80,000 and $150,000 were unchanged.
Heightened sales activity in the higher end of the housing market drove pricing up in February. At $147,000, the median sales price for single-family homes rose for the tenth consecutive month, up 6.5 percent from February 2009. The national single-family median price reported by NAR is $163,600, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in February was $203,271, an increase of 12.3 percent from one year earlier. That represents the fifth straight monthly jump in the average price.
HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In February 2010, existing home sales totaled 2,681, a 5.1 percent drop from February 2009. The median sales price rose 7.5 percent to $136,000 compared to last year. The average sales price of $189,998 increased 15.7 percent from its February 2009 level.
Townhouse/Condominium Update
The number of townhouses and condominiums that sold in February rose 8.9 percent compared to one year earlier. In the greater Houston area, 330 units were sold last month versus 303 properties in February 2009.
The median price of a townhouse/condominium edged up 2.5 percent year-over-year to $128,000. The average price was up 3.9 percent to $158,648 from February 2009 to February 2010.
Lease Property Update
Demand for single-family home rentals rose 9.9 percent in February compared to a year earlier. Year-over-year townhouse/condominium rentals shot up 20.1 percent.
Houston Real Estate Milestones in February
•The average price of a single-family home appreciated for a fifth straight month, by 12.3 percent, to $203,271;
•The median price of a single-family home rose for the tenth consecutive month, by 6.5 percent, to $147,000;
•6.3 months inventory of single-family homes compares favorably to the national average of 7.8 months;
•Townhouse/condominium sales rose 8.9 percent;
•Total dollar volume grew 5.1 percent, reaching $747 million.
The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 25,000 Realtors® throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet at http://www.har.com.
The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.
The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)
Founded in 1918, the Houston Association of Realtors® (HAR) is a 25,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston.
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